According to a recent report by the New York Times, the monthly subscription fee for ChatGPT Plus, which is currently priced at $20 (around ₹1,660), could more than double over the next five years.
Internal documents from OpenAI indicate that the company plans to raise the price to $44 (about ₹3,600) by 2029.
Rising Costs of AI Development
The primary driver behind this projected price increase is the high cost of maintaining and advancing the AI service.
OpenAI is reportedly “burning through piles of money,” with projected losses of around $5 billion in 2024.
Despite significant growth in revenue—monthly income has climbed to $300 million, with annual sales expected to hit $3.7 billion this year and an impressive $11.6 billion next year—the company remains deeply in the red.
This financial strain is partly due to the intensive resources required to power and improve its AI models.
What Does This Mean for Users?
For the millions of ChatGPT Plus subscribers worldwide, a price hike could be on the horizon as early as the end of 2024, when the subscription fee is expected to rise by $2.
Although these increases may be gradual, they could add up over time, affecting the affordability of the service.
Currently, around 10 million people are subscribed to ChatGPT Plus, enjoying benefits like faster response times, access to the latest AI models, and new features like the recently expanded Advanced Voice mode.
Expanding Features and Capabilities
As OpenAI plans to “aggressively raise” the subscription cost, new functionalities and enhanced AI models will likely be introduced to justify the price increase.
The company has already been expanding its service offerings, such as the rollout of Advanced Voice mode, which allows users to interact with ChatGPT through voice commands.
These developments suggest that OpenAI is committed to providing added value to its subscribers, even as it seeks to boost its financial stability.
The Financial Picture Behind OpenAI
The financial pressures on OpenAI are intense, with the company reportedly seeking to raise around $7 billion in additional funding.
If successful, this would value OpenAI at a staggering $150 billion—placing it on par with major corporations like Goldman Sachs and Uber. However, the path to profitability is fraught with challenges.
The company has faced recent turbulence, with three executives leaving within the past week, adding to the uncertainty surrounding its future direction.
What Lies Ahead?
While the projected price increases may not immediately impact the average user, they are indicative of a broader trend in the digital subscription landscape.
Many services, from streaming platforms to software tools, have been gradually raising their prices as they invest in new content and capabilities.
ChatGPT Plus appears to be following this pattern, and users should be prepared for potential changes to their monthly bills in the near future.
